Turnover on the Nigerian Foreign Exchange Market rose sharply to $1.41 billion on August 17, 2026, marking the highest level recorded in five weeks as activity in the FX market rebounded.

This is according to data from the Central Bank of Nigeria.

The current level is the highest since July 21 when it stood at $1.53 billion.

NAFEM turnover on August 17 was more than seven times the $185 million recorded on August 11, when FX activity fell to its lowest level in 11 weeks. The market recorded 394 deals, including 178 interbank deals.

The latest increase in turnover follows a period of relatively subdued activity in the Nigerian FX market, with daily turnover fluctuating significantly in recent weeks.

FX turnover fell to US$185 million on August 11, marking the lowest level in 11 weeks as market activity weakened.

Since then, turnover has recovered across successive trading sessions, rising to US$607.47 million on August 12 and US$387.09 million on August 13.

Activity increased further on August 14, when turnover stood at US$352.34 million, before recording the sharp jump on August 17.

The recovery in turnover was accompanied by a strengthening of the naira at the official market.

The naira closed at N1,350/$ on August 17, compared with N1,358.25/$ on August 14.

The closing rate was N8.25 stronger than the previous trading session.

The weighted average exchange rate stood at N1,349.54/$, while the simple average rate was N1,350.98/$.

The August 17 rate was also below the N1,365/$ recorded on August 11, when turnover was at its recent low.

The data suggests a sharp rebound in trading activity following the significant slowdown recorded earlier in the month.

Meanwhile, the euro traded at about $1.1581 in early Asian trading, close to the two-month high of $1.1614 recorded on Monday.

Sterling stood at about $1.3548, close to its three-month peak.

The Australian dollar gained 0.11% to $0.71119, while the New Zealand dollar traded around $0.5902.

Analysts said the sharp rebound in NAFEM turnover points to improved liquidity and stronger participation in the official foreign exchange market, although they cautioned that the surge may have been driven by large transactions and should not yet be interpreted as a sustained shift in market conditions.

Dr Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), said the sharp increase could be linked to large FX transactions by major corporate players.

“I think it may be due to some big companies who have made huge transactions which can make a whole lot of difference,” he said.

Yusuf said large importers of raw materials, machinery and other inputs could account for a significant portion of the increase in turnover.

“Imagine, for instance, maybe Dangote goes into the market to import crude. You can imagine the amount that he will make,” he said.

“My own guess is that this may be coming from some of the big consumers of forex, either in terms of their raw materials or major import of machinery. It could also be government projects which may require some foreign inputs.”

According to him, the sharp rise in turnover could therefore reflect the participation of a few major market players rather than a broad-based increase in FX demand.

Dr Olu Olajengbesi of the University of Abuja said “The real test is whether this liquidity is sustained. If we see higher turnover across several weeks, together with stable or rising reserves and a relatively narrow exchange-rate range, then we can make a stronger case that the FX market is becoming deeper and more efficient.”

The latest CBN data points to a substantial increase in FX market liquidity and trading activity after the sharp decline recorded on August 11.

Nigeria’s external reserves rose to $52.02 billion on July 20, 2026, reaching their highest level since January 2009 and surpassing the Central Bank of Nigeria’s projected level for the full year.

In December, the CBN projected the external reserves to rise to $51.04 billion in 2026, supported by stronger oil earnings, foreign exchange market reforms, and improved external inflows.